Canada 3000 grounded for good

Canada 3000 won't return to the skies.

The trustee in control of the insolvent airline told a court in Toronto that Canada 3000 will likely be sold off piece by piece.

Canada's second-biggest airline had 4,800 employees, 38 planes, and nearly $1 billion in annual revenues before it declared bankruptcy two weeks ago.

It suffered a sharp drop in revenues in the wake of the Sept. 11 terrorist attacks in the U.S.

It also fell victim to a slumping Canadian dollar and intense competition from Air Canada's Tango discount service, which began flying this month.

Meanwhile Air Canada says it lost nearly $600 million in the latest quarter.

That includes a $410 million write off of its intangible assets. Air Canada says the write-off is a reflection of the economic slump.